Tether in the Crosshairs: Why the U.S. Could Freeze Any Russian's USDT at Any Moment
The key thesis currently being discussed in the professional community is extremely blunt: the issuer of the largest stablecoin, Tether Limited, retains full control over every issued USDT, regardless of where it is stored. This means that asset freezing is not a hypothetical threat, but a real tool that can be applied to any Russian token holder.
This statement was made by PSB Chairman Petr Fradkov, whose bank is actively developing its own payment infrastructure based on the ruble stablecoin A7. According to him, precedents already exist: funds were frozen not only for owners involved in illegal activities, but also at the direct instruction of the American administration. Among those affected were major holders from Iran and Russia.
The control mechanism: why USDT is not as decentralized as it seems
Fradkov described in detail a mechanism that beginners often overlook: the issuer holds power over every token, no matter where it is located. Even transferring USDT to a non-custodial or cold wallet does not guarantee protection from blocking by the company. This destroys the illusion that moving funds to "your own" address makes them unreachable for external control.
In practice, this has already worked. In recent years, significant assets of holders from Iran and Russia have been frozen, with decisions made not only due to holders' ties to illegal activities. Fradkov separately emphasized the role of American authorities: Tether blocked funds simply at the direction of the U.S. administration, turning a formally private instrument into an externally controlled asset.
Fradkov explains this dependence by the structure of reserves. The company issuing USDT is among the largest holders of U.S. Treasury bonds, so the peg to the dollar and the American debt market does not go away. The technology has changed, but the dependence remains — even a modern digital instrument remains fully controlled by the issuer.
What this means for the Russian market
The warning came amid a rapid decline in the USDT supply. The capitalization of the largest stablecoin fell at a record pace in early August, and analysts linked this outflow to investors fleeing risky assets.
Fradkov raised the topic of risks while promoting an alternative — the ruble stablecoin A7A5. According to his data, the token's turnover has reached nearly $140 billion since launch, and the A7 platform processes up to 2,000 payments per day. The system's regular clients include 15,000 companies of various sizes, from large exporters to small businesses and individuals. Through A7, private users pay for vacations, treatment, and education abroad.
The position of the PSB representative aligns with the authorities' stance. Russian regulators this summer called foreign issuers a vulnerable link precisely because of the possibility of the U.S. influencing coin creators and freezing holders' assets. At the same time, the state did not completely close access to dollar tokens. From September 1, 2026, qualified investors will gain a legal opportunity to buy USDT and USDC through domestic licensed platforms, and companies will be able to use them in foreign trade settlements.
My view
The situation exposes a fundamental contradiction: USDT is not a "cryptocurrency" in the classical sense, but a digital debt instrument subordinate to U.S. jurisdiction. For the Russian market, this means that any settlements in stablecoins carry political risk that cannot be neutralized by technical tricks. The development of ruble alternatives is not a matter of convenience, but a matter of strategic security.